Indonesia Seeks $700 mn in Bid to Boost Renewables

In a bid to boost renewable sources for power generation, reduce carbon emissions and replace diesel power generators, Perusahaan Listrik Negara, the Indonesian state utility is seeking a $700-million investment for installing 200-megawatt (MW) solar panel.

This is part of its plan to reach net zero carbon emissions by 2060. PLN has planned to have 4.68 gigawatts (GW) of solar panels installed between 2021 and 2030.

Without dwelling on much details about the project’s construction timeline,the company’s director Evy Haryadi said, “The 200 MW solar panel is the first phase of a longer term plan to replace 1 GW of diesel power plants with solar power.”

It may be recalled that G7 countries has pledged $20 billion of public and private financing to help Indonesia’s transition to cleaner energy under the Just Energy Transition Partnership (JETP).

Last year, the G7 countries had decided to launch a Just Energy Transition Partnership(JTEP) with India, Indonesia, Vietnam and Senegal. This partnership is to help large developing economies to move away from coal in their electricity systems and achieve the Paris climate goals. Germany and the US are the two G7 nations that are co-leading the negotiations with India to join JETP.

It is reported that Indonesia  will be finalising a detailed plan for JETP fund allocation by August, as per the Head of Indonesia’s JETP Secretariat Edo Mahendra. He further informed that PLN’s plan to shift from diesel power to renewables will be a pilot program in JETP.

India want funds in the form of  grants and  not in the form of loans. So,India is pushing for climate funds for renewable energy, technology transfer and green jobs.